Categories
Economics Environment

[1710] Of solution or shut up

The Kedah state government has come under criticism for its decision to log timber in its water catchment areas. While I disagree with the decision, I feel too many sides are criticizing the state government without providing any solution — with the exception of Sahabat Alam Malaysia (SAM).

Here, I want to offer two solutions to the issue that will leave those trees in peace:

SAM rightly pointed out that Penang needs to compensate Kedah for refraining from logging timber within the water catchment areas from which Penang draws its water supply. In everything that we do, there is always an opportunity cost and Kedah is no different in this respect: one of those costs involves the decision to log or not to log.

A similar idea of compensation was proposed at the United Nations Climate Change Conference held in Bali, Indonesia last year with the objective of halting the destruction of rainforests. The origin of such an idea itself goes back to 1937 when economist Ronald Coase first proposed it. I will not bore you with the economics but what I am trying to do is demonstrate that this idea is not as novel as it sounds.

While SAM gets the idea of Coase, the state-to-state compensation is not as on target as I would like it to be. It does not link the issue with the market and any state-to-state compensation may amount to a water subsidy in the end.

A better compensation method will see consumers themselves compensating the owner of the catchment area and, in this case, the owner is the Kedah state government. This is also the reason why I do not prefer the idea of having the federal government compensating Kedah. This allows the opportunity cost to be included into the water bill of Penang folk. With that, the opportunity cost faced by Kedah will be flipped and eventually provide the state with a chance to reassess its priority. Needless to say, that translates into higher charges for water consumption for Penang folk.

The beauty of this suggestion is that it also encourages water conservation. It reveals the true cost of water to consumers and allows the consumers to appreciate the problem faced by Kedah even more. It is a model for advocating more sustainable water consumption.

The second solution involves property rights. Those who wish for a guaranteed continuous clean water supply from Kedah can purchase rights over the trees or a tract of land within the catchment areas. At the right price, the Kedah state government will sell the rights to the trees and be relieved of the temptation to cut them down. This, of course, only works if the new owners do not succumb to the temptation of cutting down the trees for money.

But the two solutions somewhat digress from my original thought. What I am trying to say is this: please offer solutions. Criticism, however justified, is simply not enough.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — a version of this article was first published by The Malaysian Insider.

Categories
Economics Environment Liberty

[1696] Of why I oppose the logging move by Kedah government

With budget constraints clearly visible, the Kedah state government announces move to harvest timber from several water catchment areas in the state to increase its revenue.[0] I find the action disagreeable and my opposition is two folds.

First revolves around the question of sustainability. While the state government will utilize helicopters to allow selective harvesting,[1] having the activity done within water catchment areas is really hard to support. I am not convinced on logging done within water catchment areas has sustainability in its equation. On top of that, when referring to sustainable forestry, I always have dedicated tree farms in mind. Furthermore, such tree farms are available in Europe and more importantly, as well as in Malaysia. This proves that the availability of a more sustainable harvesting method. So, I am through and through with the Malaysian Nature Society in disagreeing with the state government.

Secondly, it concerns the function of a government. I, as with many libertarians of minarcist tendency, prefer to have a small government focusing on governance, maybe on some developmental projects with positive externality which the private sectors have absolutely no interest in and little else. So, when the state government says it requires greater revenue to finance its operating expenditure, I could only raise a red flag. In my humble opinion, it is the expenditure which requires reduction.

If the state government plans to do some investment, then borrowing may be a better idea instead. If the investment is really good, I am sure the returns from the investment to cover at least the cost of borrowing some years later. If it is not, well, one has to wonder why should the investment be made in the first place.

Also, the current Menteri Besar himself, when he was in the opposition, opposed the helicopter harvesting when it was first proposed by the previous state administration back in 2003.[2] Now, he holds a different position. Thus, forgive me if I am beginning to think he was objecting then for the sake of objecting instead of seeing the issue on its merit. As it turns out, it does not matter if it is PAS or UMNO; all of them are the same!

The two reasons notwithstanding, I also take exception with the federal government for reneging in its promise to pay Kedah RM100 million yearly for encouraging a logging moratorium 5 years ago.[3] Though I personally think such transfer is inferior to a solution which I shall share next week at The Malaysian Insider, a promise is a promise nonetheless. Inability to fulfill a commitment reflects badly on the federal government and it has its repercussion, not just to the Barisan Nasional, but more importantly, to the country. If the Abdullah administration is incapable of staying true to its words, they should simply stop making more promises.

As in right now, the Barisan Nasional has little credibility. The Menteri Besar’s inconsistent position on the matter does little to differentiate him from the Abdullah administration.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

[0] ALOR STAR: The Kedah Government has approved logging activities at the Pedu, Muda and Ahning dam catchment areas, a move that is expected to generate about RM16bil in revenue for the state.

Mentri Besar Azizan Abdul Razak said the move was necessary to cover the high expenditure incurred by the state following the petrol price increase. [Kedah approves logging activities. Embun Majid. The Star. June 19 2008]

[1] ALOR STAR: The Kedah Government is going ahead with its plan to allow selective logging in the Ulu Muda catchment areas using the heli-harvesting technique. [Kedah to use heli-harvesting. Sira Habibu. The Star. June 22 2008]

[2] … Azizan, when reminded that he had strongly opposed a logging plan for the forest reserve when the former Barisan Nasional state government had proposed using helicopters to fell timber trees in 1992, said the circumstances were different then.

He said when he was the state opposition leader, he was not well informed on the matter. [Kedah MB stands firm on logging in the Ulu Muda forest reserve. New Straits Time. June 25 2008]

[3] ALOR STAR, June 18 (Bernama) — Kedah plans to open up the Hulu Muda Forest Reserve to logging activities to increase its revenue as the federal government has not paid the compensation for banning logging in the area five years ago.

Menteri Besar Azizan Abdul Razak said the federal government had not paid the RM100 million compensation to Kedah for banning logging in the area under the National Forestry Policy. [Kedah To Log Forest Reserve To Increase Revenue. Bernama. June 18 2008]

Categories
Earthly Strip Environment

[1695] Of none of them along the line know what any of it is worth

Some background on the logging controversy in Kedah. This is one of those rare instances where I reproduce the whole article.

GREEN groups have always eyed so-called Reduced Impact Logging or RIL techniques with suspicion. Although they do incur less damage to forests then conventional logging methods, RIL methods such as skyline yarder, long haulage ground cable system and helicopter logging — which essentially lift felled trees from the forest floor instead of dragging them — have remained controversial.

There is a nagging fear that they may be misused to log areas inaccessible to bulldozers and tractors, thereby opening the most remote forests to loggers. Or they may be used to log ecologically-sensitive sites on the pretext that they cause little destruction.

In helicopter logging, felled trees are lifted from the forest floor, unlike conventional logging where bulldozers drag logs along skid trails to the main road, exposing huge tracts of soil and damaging surrounding trees.

And now, those fears have come true. Sarawak timber giant WTK Holdings Bhd plans to extend the use of helicopter logging (or heli-logging) to forests in Kedah — forests which are not only untouched, but designated as water catchments. WTK says heli-logging is the best option for the site as it is less destructive than conventional logging.

The Kedah Government has bought into that idea. Last March, it approved in principle heli-logging of 122,798ha of forests. Timber harvesting will stretch over 10 years in two phases in the project by WTK which holds a 80% stake and the Kedah Yayasan Islam, 20%.

Phase I covers 72,934ha of the Ulu Muda forest reserve. Phase II covers 49,864ha in six forest reserves: the Ulu Muda, Chebar Besar, Padang Terap, Pedu, Bukit Saiong and Bukit Keramat. A detailed Environmental Impact Assessment, but only on Phase I, is being reviewed by the Department of Environment (DOE).

If the project proceeds, much is at stake. These forests are gazetted as ”protection forests” because they function as the water catchment for three important dams: the Ahning, Pedu and Muda. Kedah, Perlis and Penang depend on these dams and their catchment for water, as do the 96,000ha Muda Irrigation Scheme, otherwise known as Kedah’s Rice Bowl.

”If trees are harvested, the catchment forest will no longer function as a source of water,” warns a forest botanist familiar with the project. ”The terrain is hilly and logging will lead to erosion and eventually, the dam may be silted up.”

Local folks are protesting too. ”Logging will threaten farming in the Muda area,” says padi farmer Ahmad Fadzil Mohammad, 52, of Kampung Padang Tui Air Hitam, near Alor Star. ”The dams may dry up. Once you cut the trees, there will be less water.” As it is, the Muda area has suffered water woes. Just last year, a water shortage prevented the double cropping which had made padi cultivation there a success.

”Even before logging, we already have water problems. After logging, it will be worse. Only the state will profit from the project. We, the farmers, will suffer,” says Ahmad.

He says many farmers are unaware of the project and its ecological consequences. ”We have formed a group to explain to people so that they will not be confused. They can then judge for themselves whether the project is good or bad.” About 10,000 farmers have supported a signature campaign protesting against the project.

What with Kedah being known as a ”water deficit” area, the Consumers Association of Penang (CAP) says the important consideration here is to protect its water catchment. ”The loss of water due to logging will offset any economic benefits from logging,” says CAP president S.M. Idris. Furthermore, the Ulu Muda forest is one of the last tracts of remaining virgin forests in the country and is known to harbour rich wildlife.

Regrettably, these facts and the basic principle that the area is a gazetted catchment have been blatantly ignored. [Much to lose despite heli-logging. Tan Cheng Li. The Star. March 26 2003]

Oh:

“There must be some way out of here,” said the joker to the thief,
“There’s too much confusion, I can’t get no relief.
Businessmen, they drink my wine, plowmen dig my earth,
None of them along the line know what any of it is worth.”

— Bob Dylan, All Along the Watchtower.

And I like this version:

Holy frak, we are all cylons!

Some rights reserved.

Categories
Environment Politics & government

[1182] Of the rape of Lojing and the clowns in PAS

Exposé on the rape of Lojing started a finger pointing fest between UMNO and PAS in Kelantan. It was not long before the the state and the federal government started to join the blame game. To a certain extent, given how poor the state is and hence, the lack of resource to protect the natural environment, I am sympathetic of the state. Nevertheless, I am refraining from taking side for I am fully aware that both sides are more interested in looking for brownie points instead of the environment. Yet, I cannot help but ridicule PAS on the way it handles the issue. Instead of engaging in damage control, it makes matter worse for itself, much to the UMNO’s gain.

About a week ago, it was revealed by the minister of the environment Azmi Khalid that the state government — more precisely, the office of the state chief minister (menteri besar; MB) — issued a gag order to the state forestry department on the situation at Lojing. The deputy MB denied the allegation:

KANGAR: The Kelantan government is said to have stopped the state Forestry Department from divulging information on the environmental damage in the Lojing Highlands.

Natural Resources and Environment Minister Datuk Seri Azmi Khalid, who made the claim yesterday, said the gag order had resulted in the ministry not being able to get any information.

“I want the people of Kelantan to know that the Kelantan menteri besar’s office had issued a written directive to the state Forestry Department preventing them from giving any information on the damage in Lojing Highlands.”

Kelantan Deputy Menteri Besar Datuk Ahmad Yakob had earlier denied allegations that the Kelantan government had withheld information about Lojing. [‘Forestry Dept told to keep mum about Lojing’. NST. April 15 2007]

In The Star:

“The statement by the Deputy Menteri Besar that the Kelantan government did not issue such a directive is not true and implies that I have lied. I have written proof as the letter came from the Menteri Besar’s office.

“I urge Datuk Ahmad to retract his statement and check the matter with the Menteri Besar’s office,” he told reporters after closing a handicraft seminar and workshop in Mata Air near here yesterday. [Azmi hits back at Kelantan government over Lojing logging. The Star. April 15 2007]

Later, the deputy MB admitted to the existence of the order after consulting with the MB’s office:

KOTA BARU: Deputy Menteri Besar Datuk Ahmad Yakob made another about-turn yesterday, saying that there had indeed been an order restricting the disclosure of information on forest clearing in the state.

He said the menteri besar’s office had issued a letter dated March 26 to the state forestry director not to divulge details on logging in the state to federal authorities.

[…]

Ahmad, who had denied issuing the gag order, said he was only told about the letter by the menteri besar’s office on Monday. [Deputy MB blames boss. NST. April 18 2007]

In the article, the word another refers to this:

In a sudden about turn, the state government is now claiming that 13,000ha of Lojing Highlands had long been gazetted as a forest reserve.

Deputy Menteri Besar Datuk Ahmad Yakob, contradicting his own statement on Sunday that the government-owned 25,000ha of land in Lojing which had yet to be gazetted under the National Forestry Act 1984, said the 13,000ha had been earmarked as a water catchment area. [Deputy MB’s gaffe over Lojing Highlands claim. NST. April 17 2007]

That means he shot himself in the foot, twice. He should be in a wheelchair now. It is unsure if the shot foot was in his mouth.

Back to the letter, apparently, the letter ordered the forestry department not to divulge information to the public with permission from the chief minister’s office, as clarified by PAS member Husam Musa:

State Public Administration, Economic Planning, Finance and Community Development Committee chairman Datuk Husam Musa said Menteri Besar Datuk Nik Aziz Nik Mat, as a state leader, was “well within his rights” to insist on being kept informed.

He said a letter dated March 27 to the department was in fact not a gag order although it ordered the department director to obtain permission from the menteri besar before releasing any information on land clearing in the state. [State says MB ‘well within his rights’. NST. April 19 2007]

Not a gag order? Really? Further in the same article:

“We have no intention of restricting information or vetting them as we are transparent. But the menteri besar must be informed, otherwise there will be chaos.” [State says MB ‘well within his rights’. NST. April 19 2007]

No intention of restricting information? Transparent? Au contraire!

There is no restriction of information if and only if the state does not restrict information!

And yes, that is a tautology.

Moreover, how does the rationale “menteri besar must be informed” rationalize the restriction of information? Would the MB be uninformed if there was no gag order? Stupid is it not?

Also, despite what had happened:

Its secretary, Takiyuddin Hassan, said the party would hire a consultant who would be accompanied by knowledgeable government officials to inspect the development of hilly terrain in other states.

“We are pushing for total conservation of the environment. We are aiming for it in Kelantan, but can other states follow suit?” he said in an interview. [Look at damage in other states first, says Kelantan. The Star. April 1 2007]

The people from PAS will be better off if they take my advice: slow down and think way, way harder before blurting an opinion.

Categories
Earthly Strip Environment

[1156] Of Earthly Strip: UMNO-PAS the environmental warriors

Upon news of the devastation of Lojing broke out, UMNO Kelantan immediately seizes the opportunity to grab a couple of brownie points by appointing itself as the guardian of the environment:

KOTA BAHARU, March 31 (Bernama) — Kelantan Umno has set up an action committee to check the ecological damage due to excessive logging at Lojing Highlands, which is said to be worse than anticipated and rather complex in nature.

Chairman of the State Umno Liaison Committee Datuk Seri Annuar Musa said Saturday non-governmental organisations were invited to join the committee which would compile data on the damage with information from various agencies. [Umno Forms Committee To Check Damage At Lojing Highlands. Bernama. March 31 2007]

PAS meanwhile declares that the party is “pushing for total conservation of the environment“, despite what is happening in Lojing:

KOTA BARU: Kelantan PAS plans to use a helicopter to conduct aerial inspection of hilly areas in other states to check for environmental damage.

Its secretary, Takiyuddin Hassan, said the party would hire a consultant who would be accompanied by knowledgeable government officials to inspect the development of hilly terrain in other states.

“We are pushing for total conservation of the environment. We are aiming for it in Kelantan, but can other states follow suit?” he said in an interview. [Look at damage in other states first, says Kelantan. The Star. April 1 2007]

Methinks:

Some rights reserved. By Mohd Hafiz Noor Shams